Profits up at Smyths UK unit

Revenues at the UK arm of the Smyth Toys family retail business last year increased 3 per cent to a record £938.7 million (€1.12 billion).
New accounts filed by the Galway headquartered Smyths Toys UK Ltd shows that operating profits increased by 4 per cent to £20.3 million on the back of bumper sales of best-sellers, Lego, Barbie, Nerf Guns, Paw Patrol and My Little Pony toys.
The directors state that revenues increased from £910.7 million to £938.7 million due to an increase in footfall in the stores and the addition of two new stores.
They state that the company’s gross margin fell slightly to 17.7 per cent in 2023, due to continued pressure on costs.
Pretax profits decreased by 5 per cent to £18.4 million due to net interest charges of £1.9 million that did not occur in 2022.
The firm’s buoyant performance resulted in the business paying out a dividend of £15 million and this followed a dividend payout of £30 million in 2022.
The directors state that they are pleased with the results particularly given the current economic climate and the competitive marketplace.
Numbers employed by Smyths Toys UK Ltd increased by 81 from 3,305 to 3,386.
On the future developments of the business, the directors state that it is envisaged that further expansion will occur in the UK market in the coming years through the opening of new stores.
The number of stores in England, Scotland and Wales today totals 120 and its separate Northern Ireland arm operates seven stores.
The size of the overall business across the UK, Ireland and Europe has increased sharply in recent years with the expansion into France following the acquisition of PicWic Toys in France in July 2022.
Last year, Smyths Toys expanded its presence in France with the opening of four new stores to bring to 45 stores there and it also operates four stores in the Netherlands.
The firm’s German business has also expanded with the opening of two new stores bringing the total to 72. The company also has a presence in Austria and Switzerland.
The business is operated by the Smyth family from Co Mayo. Staff costs at Smyths Toys UK last year increased by 17 per cent from £57.85 million to £67.65 million.